Series Arithmetic Mean What was the arithmetic average annual return on large-co

Q: Series Arithmetic Mean What was the arithmetic average annual return on large-co

a) Arithmetic average annual return on large company (Nominal return) = 14.9% b) (1+Nominal rate) = (1+Real rate)×(1+Inflation rate) (1+14.9%) = (1+Real rate)×(1+4.8%) Real return = 9.64%

ID: 2749423 • Letter: S

Question

Series

Arithmetic Mean

What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What was the arithmetic average annual return on large-company stocks in real terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

©2015 McGraw

Consider the following information on large-company stocks for a period of years.

Explanation / Answer

Arithmetic average annual return on large company (Nominal return) = 14.9%

(1+Nominal rate) = (1+Real rate)×(1+Inflation rate)

(1+14.9%) = (1+Real rate)×(1+4.8%)

Real return = 9.64%

Navigate

Series Arithmetic Mean What was the arithmetic average annual return on large-co

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

Series Arithmetic Mean What was the arithmetic average annual return on large-co

Question

Explanation / Answer

Related Questions

Navigate